Correlation Between Ab Intermediate and Astor Long/short
Can any of the company-specific risk be diversified away by investing in both Ab Intermediate and Astor Long/short at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Ab Intermediate and Astor Long/short into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ab Intermediate Bond and Astor Longshort Fund, you can compare the effects of market volatilities on Ab Intermediate and Astor Long/short and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Ab Intermediate with a short position of Astor Long/short. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ab Intermediate and Astor Long/short.
Diversification Opportunities for Ab Intermediate and Astor Long/short
0.37 | Correlation Coefficient |
Weak diversification
The 3 months correlation between ABQZX and Astor is 0.37. Overlapping area represents the amount of risk that can be diversified away by holding Ab Intermediate Bond and Astor Longshort Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Astor Long/short and Ab Intermediate is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Ab Intermediate Bond are associated (or correlated) with Astor Long/short. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Astor Long/short has no effect on the direction of Ab Intermediate i.e., Ab Intermediate and Astor Long/short go up and down completely randomly.
Pair Corralation between Ab Intermediate and Astor Long/short
Assuming the 90 days horizon Ab Intermediate is expected to generate 1.49 times less return on investment than Astor Long/short. But when comparing it to its historical volatility, Ab Intermediate Bond is 1.77 times less risky than Astor Long/short. It trades about 0.02 of its potential returns per unit of risk. Astor Longshort Fund is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 1,270 in Astor Longshort Fund on December 2, 2024 and sell it today you would earn a total of 21.00 from holding Astor Longshort Fund or generate 1.65% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Weak |
Accuracy | 87.04% |
Values | Daily Returns |
Ab Intermediate Bond vs. Astor Longshort Fund
Performance |
Timeline |
Ab Intermediate Bond |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
Astor Long/short |
Ab Intermediate and Astor Long/short Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Ab Intermediate and Astor Long/short
The main advantage of trading using opposite Ab Intermediate and Astor Long/short positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ab Intermediate position performs unexpectedly, Astor Long/short can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Astor Long/short will offset losses from the drop in Astor Long/short's long position.Ab Intermediate vs. Doubleline Emerging Markets | Ab Intermediate vs. Federated Government Income | Ab Intermediate vs. Pro Blend Servative Term | Ab Intermediate vs. Nationwide E Plus |
Astor Long/short vs. Salient Mlp Energy | Astor Long/short vs. Transamerica Mlp Energy | Astor Long/short vs. Oil Gas Ultrasector | Astor Long/short vs. Transamerica Mlp Energy |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
Other Complementary Tools
Transaction History View history of all your transactions and understand their impact on performance | |
Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. |